Written by Emily Windred
If the Financial Services Royal Commission has been leaving you feeling confused, lost, or even a little defeated- you aren’t alone. The effects of the royal commission are being felt throughout the small business sector as lenders’ purse strings across the nation tighten in response to changing commission structures and regulations.
Luckily, regardless of what the lending market is doing, there is always a way to find what you need to kick-start or grow your business – if you know where to look! There are services at your fingertips designed to source the best financial solutions available to you and your individual circumstances, with experienced professionals who are able to see through the trends and roadblocks in the lending market.
In an interview with the leadership team from Flexible Capital, a leading provider of financing solutions for businesses, we gained some insight into the way in which a small business owner can navigate these shifts and restrictions in order to see their business flourish. Here are just some of the things we learned from John Giovannetti and Rod Berryman from Flexible Capital:
1. In this current financial climate, capital is key
“One of the things I’m finding with the current market is… the area of cash flow and working capital is a big consideration for business. Suppliers are wanting to be paid earlier, creditors are looking to extend terms, it’s one area that I’m finding that people are taking a lot of time to try and look at, because they’re looking for ways to better manage their cash flows” – Rod Berryman.
This may seem like an obvious statement, but nevertheless it rings true: you must source some working capital in order to survive and thrive in the current market. It will see your business through the rocky periods and put you above your competitors that are struggling to come up with the cash. This is just the beginning- continue scrolling to find out more about how to establish your business as a cut above the rest…
2. The gap that big banks have left behind is already getting filled
“In the Tier 1 space the ease of accessing capital has definitely reduced somewhat, so banks are a little bit more reluctant to close the deal, and they’re definitely looking for more property security and looking for better serviceability. In saying that, that has led to more Tier 2s filling the void.” – John Giovannetti.
The royal commission is largely targeting the big banks, which has led to a tightening of their gigantic purse strings. However, there are smaller lenders and FinTechs (financial technology companies) that are coming forward to fill this gap in the lending market. This has also led to further technological developments within the sector, with some smaller lenders developing their own products to assist in filling the void left by Tier 1 companies. So fear not, even though the news is full of big banks cutting their funds, there are already viable alternatives taking their place.
3. Taking a loan against the house is not the only answer
“Most people think that the only options available to them are basically taking a loan against the house, where there are numerous other options that are available. That’s one of the things we find, just trying to educate people that there are other options than what, for instance, a traditional bank will offer.” – Rod Berryman.
It is a common misconception that putting the house on the line for a loan is the best (and only) way to obtain funding. In reality, whilst it is often a preferred option, there are products in the market that require no property security at all! If you are looking for an alternative to a traditional banking product, seeking advice from the professionals is the best thing you can do – both for yourself and your business.
4. Education: knowledge is power
“Some of the products that we’ve got access to, and that we’ll promote to our clients; they can be extremely effective if utilised properly. So from my point of view it’s not just about aligning a client with the appropriate facility, it’s about coaching them in the effective use of that facility, that way they can manage it in the most cost-effective way possible.” – John Giovannetti.
The average Australian has a lot to learn when it comes to the complexities of the finance industry. Flexible Capital is striving to remedy this information gap by educating their clients on the options available to them and their unique circumstances. There are still ways to obtain the capital that you need, despite the effects that the royal commission has had on the lending market.
5. Your financial solutions are just a phone call away
What you’ve read here today is just the beginning; you can learn so much more about how you make your business dreams a reality with a quick call to the experts. Flexible Capital is a leading provider of financing solutions for businesses, ensuring that you receive support for all of your working capital needs. A client’s success is always prioritised over profit margins, and Flexible Capital has experienced and knowledgeable experts at the ready to help you make the best financial decisions to kick-start the next chapter in your life.
“We want people to be happy, satisfied. We want them to grow, and we grow with them.” – John Giovannetti.
Click here to learn about your best capital options from the leading experts in the field.
About Flexible Capital
Flexible Capital’s long standing relationships and experience ensures an ability to source the best finance facility for each client, in both the commercial and domestic space. With a client base that ranges from small sole traders, up to ASX listed companies, size is no restriction.
Be it a new vehicle, a business cashflow solution, or funding for a new property, Flexible Capital will find the right solution for you. With options ranging from major banks for prime lending, to non-bank lenders for non-conforming credit impaired clients, their wide range of lenders have a product for every situation.
If you are looking to start or grow your own business and are looking for the best way to secure the financing you need, we encourage you to get in touch with. Click here to make an enquiry with Flexible Capital today!